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Actual costing normal costing accounting for manufacturing overhead Dakota Products uses a job-costing system with two direct-cost categories direct materials and direct manufacturing labor

Actual costing, normal costing, accounting for manufacturing overhead. Dakota Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Dakota allocates manufacturing overhead costs using direct manufacturing labor costs. Dakota provides the following information:

1. Compute the actual and budgeted manufacturing overhead rates for 2017.

2. During March, the job-cost record for Job 626 contained the following information:

Compute the cost of Job 626 using (a) actual costing and (b) normal costing.

3. At the end of 2017, compute the under- or overallocated manufacturing overhead under normal costing. Why is there no under- or overallocated manufacturing overhead under actual costing?

4. Why might managers at Dakota Products prefer to use normal costing?

Jul 19 2020 View more View Less

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